Macaulay Roller Skates has three product lineslong dash—D, E, and F. The following information is available: D E F Sales revenue $70,000 $50,000 $ $31,000 Variable costs (20,000) (15,000) (11,000) Contribution margin $50,000 $ 35 $35,000 $20,000 Fixed costs (20,000) (5,000) (23,000) Operating income (loss) $30,000 $30,000 $(3,000) The company is deciding whether to drop product line F because it has an operating loss. Assuming fixed costs are unavoidable, if Macaulay drops product line F and does not replace it, what effect will this have on operating income?

Answer rating: 100% (QA)

D E F total Sales revenue 70000 ... View the full answer